Two Harbors Investment Corp. (TWO) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $117.79 million, or $ 0.34 a share in the quarter, against a net loss of $34.79 million, or $0.09 a share in the last year period.     

Revenue from real estate activities during the quarter increased 10.49 percent or $16.03 million to $168.86 million.

Cost of revenue surged 62.76 percent or $23.27 million during the quarter to $60.35 million. Gross margin for the quarter contracted 1148 basis points over the previous year period to 64.26 percent.

Operating income for the quarter was $70 million, compared with $77.08 million in the previous year period.

"We delivered strong results this quarter as smart portfolio management drove healthy increases in both earnings and book value," stated Thomas Siering, Two Harbors’ president and chief executive officer. "While we are pleased with our recent performance, we are even more enthusiastic about the coming year as the benefits of our efforts to streamline our business and increase our earnings potential are expected to materialize in 2017."

Net receivables were at $3,743.22 million as on Sep. 30, 2016.

Investments stood at $15,598.19 million as on Sep. 30, 2016.

Total assets grew 22.57 percent or $4,014.58 million to $21,799.90 million on Sep. 30, 2016. On the other hand, total liabilities were at $18,321.66 million as on Sep. 30, 2016, up 30.75 percent or $4,309.08 million from year-ago.

Return on assets was at 0.54 percent in the quarter against a negative 0.20 percent in the last year period. Return on equity was at 3.39 percent in the quarter against a negative 0.92 percent in the last year period.